Category: Growth

Ellie Mae

Ellie Mae has been an industry leader for years, as HousingWire detailed in 2014 when we awarded the company our Market Influence award. At that time, the company’s Encompass solution processed more than 20% of all mortgage originations in the U.S., giving the company an impressive impact. The company had also made a critical investment in compliance, outfitting Encompass with a built-in compliance engine and Total Quality Loan program.

Fast-forward two years and the company has continued to grow its clients and its revenue.

In the third quarter of 2015, the company reported financial results that exceeded expectations, growing revenue by 61% over the third quarter of 2014. Ellie Mae’s customers also continued to grow their businesses and add more seats, which helped the company achieve another quarter of record seat bookings, with 11,900. That growth is even more striking when you consider the market share the company already had — it’s not a startup posting huge growth because they just opened for business.

Other third-quarter highlights:

  • Record revenue of $68.9 million, up 61% from $42.8 million in Q3 2014
  • Net income of $6.2 million, up 24% from $5 million in Q3 2014
  • Adjusted EBITDA of $20.3 million, up 45% from $14 million in Q3 2014

The Encompass LOS is still at the core of the company’s success. In the third quarter Ellie Mae saw the total number of active Encompass users increase 30% year over year to 135,000, and for good reason, as the company reported that the revenue of the average active Encompass user increased 24% to $520 from the year before.

The all-in-one, integrated solution covers the entire loan lifecycle and provides one system of record for lenders. Under today’s regulatory burden, lenders who can originate, underwrite and close loans using one system see a definite benefit, especially when compliance has been baked into the system. An independent study by MarketWise Advisors revealed that lenders using Encompass could achieve $970 savings and value per loan, $446 reduction in per-loan origination costs, 477% projected ROI and an average payback period of 2.64 months.

With those kind of metrics, Ellie Mae’s strong growth shows no sign of slowing down.

Category: Elegant Implementation

ACES Risk Management (ARMCO)

Our elegant implementation winner this year, ACES Risk Management, exemplifies that last point. With its ACES Analytics QC benchmarking platform, the company has enabled mortgage lenders to assess their quality against their peers, a significant achievement on its own. But the company has also gone the extra mile to make the results easy to understand with data visualization that displays the results over time.The purpose of the “elegant implementation” category is to find simplicity where others have created complexity. Often this is seen in a solution’s user interface design, as we recognized with last year’s winner, Redhawk Research, but it can also be seen in solving a problem that others have missed or in taking something that was complicated and making it easy to understand.

ACES Analytics is integrated with Tableau’s reporting software, and instead of static, PDF-based reporting, ARMCO has provided its customers with dynamic, customized reporting that allows readers to interact with the data in real time. This level of responsiveness is unique to ARMCO’s solution and enables lenders to act quickly and decisively to address loan defects, rather than waiting for end-of-month reporting.

Regulatory oversight, especially increased scrutiny of third-party vendors, has amplified the importance of quality control throughout the industry. By benchmarking quality control results against peers, companies can uncover previously hidden defects.

For example, if a lender had a liabilities defect rate of 8%, that wouldn’t seem to need the attention that its largest defect category, loan package documentation, merited at 22%. But only by comparing the results with its peers could the lender find that its largest defect category was below the industry average of 27%, where the liabilities rate was more than four times the industry average of 2%.

This kind of visibility into problem areas means companies can adjust their processes and gain better results faster.

ARMCO was first-to-market with its QC benchmarking tool, and since launching ACES Analytics in Sept. 2014, the company has increased its data intelligence and is currently reporting statistics using over 100 lenders of various sizes. ARMCO has experienced average annual growth of 40% in both revenue and new client acquisition over the past three years.

Category: Something Else Entirely

Hearsay Social

Navigating the sharp twists and turns of the social media universe just got a whole lot easier for those in mortgage finance. Hearsay Social is an enterprise technology platform that provides a Predictive Omnichannel Suite for more than 115,000 financial professionals in more than 20 countries, allowing them to engage today’s social, mobile customer through social media, mobile-first websites, personalized email and text messages – and manage all these channels from a single dashboard.

The Hearsay Social suite of applications provides unique multi-channel client insights and predictive content recommendations for financial professionals so that they can share the right information with the right person, at the right time, on the right communication channel.

Hearsay Social’s predictive listening (“hear”) and content publishing (“say”) technology, combined with its machine learning algorithms that optimize the accuracy of these results over time, help financial professionals deepen relationships with their networks and ultimately increase business.
Worried about compliance? The company’s built-in enterprise integration and governance delivers compliance and supervision for global firms, addressing industry regulations and enforcing policy. Corporate compliance teams have a single, unified dashboard view of adviser activity across channels, increasing efficiency.

Hearsay Social uses natural language processing to identify important life events happening within a financial professional’s social networks, eliminating the need to scroll through social feeds, then utilizes its predictive Content Library to provide intelligent recommendations on which content pieces will appeal to a financial professional’s network. The company also offers Hearsay Sites, Hearsay Mail and Hearsay Messages applications.

Founded in Silicon Valley in 2009, Hearsay Social now has dedicated local presences around the world and is used by seven of the top 10 global financial institutions. The platform expanded from a single social media point solution to a full Predictive Omnichannel Suite of four solutions, all built from the ground up, in less than one year.
Hearsay Social has grown 90% year over year and has nearly doubled its customer base in the past year. The company is a SIFMA strategic partner and has raised $51 million from Sequoia Capital, NEA and private investors.